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| Statement |
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| Notably these third party industry sources are projecting that EV sales were build on a strong base growth, posting a 25% CAGR through the end of the decade |
| Of special note, we're excited and appreciate Glencore's support and continued cooperation |
| First, we are immensely proud of the Li-Cycle team for their continued commitment, hard work, and dedication |
| As seen of the right, these growth dynamics support the robust demand for expanding market for recycling of all forms of lithium-ion batteries |
| Turning to slide 15, just taking a step back, we continue to see favorable secular industry demand trends in North America and Europe |
| I think at this stage what we're doing is we're right in the midst of these, just did a terminal technical review, looking at the technical economic viability, which was good and that was positive |
| This capability combined with the operational capacity in both North America and Europe has enabled us to build out a diversified global customer base |
| This environmentally friendly process does not rely on any thermal treatment, produces no waste water and is highly scalable for the growing EV battery market |
| However, it is worth noting that we are in the position to serve the adoption of changing battery chemistries, including LFP, which has been gaining prominence in the industry particularly in Europe, with respect to our spoke operations for processing battery materials and our black mass production |
| The chart on the left illustrate the rising adoption of electric vehicles per sales closing record growth adoption at an approximate 45% CAGR from 2019 to 2023 based on the third party sources |
| This exceeded the top end of our revised guidance of 5,500 tonnes to 6,500 tonnes |
| Second, on improving working capital, we have been actively engaged with contractors and suppliers to the Rochester Hub project to negotiate extended payment plans as well as extending other payment cycles and implementing other similar measures |
| Product sales and recycling services revenues before non-cash fair value pricing adjustments increased to $23.6 million, a 34% increase compared to $17.6 million in 2022 |
| Turning to slide five for details on Glencore's additional investment for $75 million in a senior secured convertible note, this investment which enhances Li-Cycle's liquidity represents an interim step in our funding strategy to support our future plans |
| Importantly, our internal technical review confirmed the technical viability of the MHP process |
| So, starting with our engagement with the DOE since the pause, as I said, [indiscernible] the call, we're very thankful to DOE for continuing to actively engage with us and be very supportive, and that hasn't changed to be frank over the last couple of months |
| Today, we're pleased to share the meaningful steps taken towards achieving the key objectives from this review, and also to discuss our 2023 financial and operating results |
| As discussed earlier, we believe this additional financing with Glencore demonstrates continued support of Li-Cycle's business model |
| It is projected by 2030, demand for recycling material will increase by up to six times from 2023 levels |
| In the fourth quarter, we exceeded 80% availability at our operating U.S |
| After careful review and assessment of the alternatives identified through this process, and consistent with the recommendation of the Special Committee, Management and the Board were pleased to expand upon Li-Cycle's existing long-term partnership with Glencore to increase their strategic investment in Li-Cycle by $75 million |
| And so, essentially where traditional facilities would be discharging industrial wastewater, we've invested in technology and capital to be able to effectively reclaim that water and avoid the need for an industrial wastewater discharge |
| Nice talking to you |
| Near to midterm, the increase in recycling material was largely driven by manufacturing scrap from gigafactory growth supplemented by end-of-life battery feedstock towards the end of the decade |
| The increase was largely driven by a higher value product sales mix, coupled with higher recycling services revenues from new service contracts, and partially offset by reduced market prices for cobalt and nickel |
| We are diligently working to manage our cash to support our liquidity needs |
| Turning to slide 14 for a discussion on the actions taken on the cash preservation plan, at the beginning of November, we implemented a cash preservation plan, which has helped to reduce cash outflows while we explore strategic alternatives and financing options to increase liquidity |
| Third, on rationalizing our cost structure, we will continue to further right size and reshape our organization, further reduce costs at are our spoke operation, and additional cuts to non-core SG&A cost |
| Brian Dobson Excellent |
| Brian Dobson Yes, excellent |
| Statement |
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| Total revenue was $18.3 million compared to $16.5 million in the prior year, reflecting an unfavorable non-cash fair value pricing adjustment of $5.3 million versus $1.1 million in 2022, related to the lower market prices for cobalt and nickel |
| Turning to slide nine for the status of our network portfolio, we have slowed operations at our spokes network, including pausing operations at the Ontario spoke, slowing operations at the New York, Arizona and Alabama spokes on an ongoing basis and are currently reviewing further pauses or slowdowns |
| Adjusted EBITDA loss was $166.4 million compared to a loss of $118.5 million in 2022 |
| Other income was $24.7 million, a decrease of $27.2 million compared to the prior year, which was primarily related to a decrease in fair value gains on our convertible debt |
| We've also paused the development of the Portovesme Hub while undergoing further review with Glencore on this project |
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